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Purpose - The goal of this research is to demonstrate that financial performance of current year is dependent to the amount of maturity of the supply chain processes. This aim is achieved through considering current supply chain process maturities of the firm together with financial performance of prior years.

Research question - How supply chain process maturities in relation to financial performance of prior years are related to current financial performance

Methodology - The deductive approach has been followed to use theories and literatures to build the hypothetical model in order to test it empirically.

This quantitative research is benefited from the primary data of Swedish steel SMEs including the secondary data from financial ratios from Scandinavian financial database

Findings - The effect between supply chain process maturity and current year financial performance, the effect between prior year financial performance and current year financial performance, and also total effect of prior year financial performance and supply chain process maturity on current year financial performance proved empirically.

The paper reports on a project in the area of simulation based decision support (SBDS) at the operational level of the manufacturing system. The purpose of the project was to explore and describe the possibilities to use a standard discrete event simulation package for capacity planning in a situation where labor was a primary and scarce production resource. This has been done through a case study at a Radio Base Station (RBS) assembly line at Ericsson Radio System, Gavle in Sweden. Results from the study are a conceptual structure for a SBDS system and a prototype simulation system tailored for the RBS-2000 assembly line. The system has been tested in a simulated environment and results indicate a delivery precision improvement of eleven percent. Conclusions from the study are that this kind of tool for operational decision support offers a flexible decision support environment and that the need for high quality information and information collecting systems are crucial for the success of such tools.

Since1996, all Swedish public authorities, which includes most universities, have been made responsible for contributing to the sustainable development of the society. Swedish universities are thus required to submit annual environmental reports about their policies, structures and actions. This study provides a review of the activities that Swedish universities have undertaken so far. Reports from the year 2000 show that all 25 participating universities conducted the first environmental review. Most universities stopped there, although one – Mälardalen University – has gone all the way to ISO 14001 certification. The findings of the study suggest that universities, which have been participating for some years in the project, are further along the line than those that joined recently. There is also some indication that environmental-management-system (EMS) work is easier for the smaller universities, which can mobilise around a single goal.

University of Gävle, Department of Technology and Built Environment, Ämnesavdelningen för industriell ekonomi.

ABB in Sweden: A New Start at the Old Mecca1999In: Being Local Worldwide: ABB and the Challenge of Global Management / [ed] Jacques Bélanger, Ithaca, N.Y.: Cornell University Press , 1999, p. 156-178Chapter in book (Refereed)

8. Comparing innovation outcomes of two outsourcing strategies

Bengtsson, Lars

University of Gävle, Department of Technology and Built Environment, Ämnesavdelningen för industriell ekonomi.

Despite the proclaimed advantages and popularity of outsourcing, there are few and contradictory studies of the effects. The main purpose of this paper is to analyse how outsourcing manufacturing relates to performance and innovation at the plant level. A second purpose is to analyse how this outcome relates to investments in manufacturing capability. This paper is based on the results of a large-scale survey of outsourcing and manufacturing practices among a representative sample of Swedish engineering firms. The results show mainly no significant effects from outsourcing manufacturing on plant operating performance or innovation capability. This paper, however, reveals that the firms' investments in technological and organisational capabilities explain the improvements of performance at the plant level to a significantly higher extent than outsourcing does. This paper concludes with a suggestion to further analyse the potential of combined outsourcing and manufacturing strategies.

For a long time, the telecom equipment industry has been at the forefront of outsourcing and relocating production operations to contract manufacturing firms located in Asia and Eastern Europe. Recently, however, leading firms have begun to revise this strategy, based on their recognition of the continual importance of technological leadership and integration capabilities. Using a case study of a key company, this paper explores the dynamics of outsourcing and production strategies in the telecom equipment industry. One of the central aspects under study is the interaction of product development with industrialisation and production. The paper analyses issues such as component standardisation versus differentiation and technological integration, the value of deep integration capabilities for cost reductions, and why production competence and the rapid industrialisation of products incorporating new technologies have acquired renewed importance, despite the global trend towards lowest-cost locations.

Despite the proclaimed advantages and popularity of outsourcing manufacturing and knowledge-intensive business services, there are few and mainly contradictory studies of its short- and long-term effects. The main purpose of this paper is to analyze the way in which outsourcing manufacturing and design work relates to performance at plant level. The study is based on a large-scale survey among a representative sample of Swedish engineering plants. The results show no significant effects from outsourcing manufacturing on plant operating performance. The paper further shows that investments in technological and organizational capabilities explain the improvements of performance to a significantly higher extent than does outsourcing. The problems of additional costs and managing dependencies when applying partial outsourcing and separating interdependent key processes provide important insights to the analysis on the effects of outsourcing knowledge-intensive business services (KIBS).

This article examines the relationship between quality management strategies and changes of work and work organization in industrial companies. Nine case studies in Sweden show that companies whose aim is total quality practice three different quality strategies characterized by detailed control, motivation of employees, and reorganization. It is argued that total quality management should include redesign of the work processes, combining decentralization, group work, goal-oriented control, and skill development. This reorganization strategy not only offers a greater potential for improvement of work, but it also seems essential for improving quality and productivity in the long run. (C) 1998 John Wiley & Sons, Inc.

One way for a small subcontractor to meet increasing global competition is to develop a system supplying ability, which implies more focus on logistical issues and a larger overall responsibility in the supply chain. Certain logistics capabilities have been identified as important to a small- or medium-sized subcontractor in order to cope with the system supplying role. Interviews have been carried out in a multiple case study with the purpose of identifying important resources for a smaller supplier with the ambition of forming logistics capabilities to support system supply. Resources within three different areas have been identified: organizational, competence base, and tools. Conclusions from a comparison among three companies, with different degrees of system supplying services, point out the importance of an organization with clear and distinct responsibilities and authorities. Competencies in logistics and enhanced understanding and use of IT support and communication systems are identified as areas to improve for the smaller companies.

38. Towards system capability

Carlsson, Inga-Lill

University of Gävle, Department of Technology and Built Environment, Ämnesavdelningen för industriell ekonomi.

This article reports findings from the Swedish part of the 2nd International Continuous Improvement Survey. Based on Bessant's evolutionary model of continuous improvement behaviour, the continuous improvement capability level of the Swedish engineering industry is estimated. The data analysis shows that there is a need for progression towards higher continuous improvement capability levels. Therefore, the specific abilities to develop in order to support such a move forward are clarified. In addition to being an illustration of manufacturing practices in Sweden from a continuous improvement perspective, this article contributes to the field of Operations Management by being the first attempt to replicate the work of Bessant via a large-scale survey study. The model is found valid and it shows that development of continuous improvement abilities contribute to the enhancement of plant performance.

The study sought to clarify the comparative effect of outsourcing in relation to alternative manufacturing practices. A representative sample of 267 Swedish manufacturing plants was subjected to multiple regression analysis. Results show that in comparison to outsourcing manufacturing, the other practices related to the enhancement of manufacturing capability had a much stronger ability to predict improvements in operating performance. While investments in higher manufacturing capability have only positive effects, outsourcing may entail negative as well as positive effects on operating performance. For the most part, outsourcing leads to negative effects when used as the main strategy to improve performance, but is more likely to cause positive effects if concurrent initiatives are taken to develop manufacturing capabilities. Thus it is argued that there is a far greater performance improvement potential in investing in, rather than divesting, the manufacturing function. Outsourcing is mainly beneficial when used to free resources in order to invest in higher manufacturing capability.

University of Gävle, Department of Technology and Built Environment, Ämnesavdelningen för industriell ekonomi. University of Gävle, Center for Logistics and Innovative Production. KITE Research Group, Linköping University, Linköping, Sweden.

von Haartman, Robin

University of Gävle, Department of Technology and Built Environment, Ämnesavdelningen för industriell ekonomi. University of Gävle, Center for Logistics and Innovative Production.

An empirical study was designed to determine factors of performance improvement when outsourcing manufacturing. Findings from a survey of 136 manufacturing plants in Sweden show that most of them achieve their outsourcing motives, but not without trade-offs. Factors of performance improvements such as economies of scale or operations in low-cost countries can improve one performance dimension, such as product cost, yet negatively impact volume flexibility, speed or product innovation. The results show part characteristics and supplier operating capabilities are more important than supplier relationship strategies when outsourcing manufacturing, meaning that supplier selection trumps supplier collaboration in the make-or-buy decision.

This study is about to see whether the two models representing the strategies of lean production is to use and apply in different companies. The models are structured in two different ways in which one of them is checking the softer elements of lean production in the form of leadership and strategies. This model is called Lesat and is based on interviewquestions. The second model, called "learning to see" is about identifying flows. This, together shall then give an idea of how mature companies are when it comes to a whole in the concept of lean production, and susceptibility to use these models to their respective companies.

The study is conducted in two companies, SKF couplings systems and AQ parkoprint. SKF is a company that makes connections through a special method called the oil injection method. Parkoprint produces mainly parking meters of all kinds, this is done in close cooperation with customers and their preferences.

The study has been carried out by means of interviews of individuals in leadership positions in each business. We also interviewed operations personnel and has developed facts through observation and computer systems to make the flow surveys.

The results show that the models themselves are useful and functional. However, it became more difficult to use the Lesat showing soft data, rather than "learn to see" that focuses mostly on flows. This is for several reasons. One of the reasons was that the companies examined were not quite at the level existing strategies and leadership that Lesat calls, this makes it difficult to estimate where in the assessment firms ports when the people interviewed do not really are in line or understand how the model or concept works in some areas. In addition to this we experienced it difficult to make a fair assessment when the model in any way based on subjective assessments from companies and then marked in a way that also tends to be of subjective nature. From this perspective, we believe that Lesat model fit better in a study of the companies that has made more of work on lean production and has achieved a higher degree of maturity, and thus become a little easier to rate and provide a more realistic sense.

It appears that the models worked with different conditions and also with different results. However, the two worked so well that it clearly has been able to see the potential strengths, weaknesses and possible improvements in the respective organization. This means that the combination of the two satisfactory to achieve a whole, and that any use, ie organization, can help to improve and lead organizations to more effectively work with and against the lean production.